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F, C. HARTSHOBN.]

MINUTES OF EVIDENCE. WELLINGTON. Thursday, 6th Febeuaby, 1919. I<\ C. Hartshorn, Commission Agent, examined. (No. 1.) Mr. Fallover and I come from the New Zealand Tobacco Company (Limited), of Napier, the directors of which have deputed us'to appear before the Committee to state the position of the industry as far as we have gone into it. The position is as follows :We started growing tobacco on a farm at Olive Grange on about 11.0 acres of land in 1914., The industry being a new one, a lot of time and money was expended in experimenting before we could make an absolute start in growing commercially. For the season 1914-15 we grew and cured 42,000 lb. weight of tobacco, which averaged out at 8001b. per acre. Since then we have grown for another two seasons, and have grown and cured in all about 181,640 Ib. of leaf. Commercially, the tobacco if properly grown and cured is worth from Is. to 2s. -per pound. At Is. this gives the grower a return of £40 per acre. The work of growing the tobacco does not require any special knowledge or expense, and once a farmer is shown how to do it and is instructed in the curing it requires less labour than fruitgrowing. This crop, compared with any other commercial crop, gives a far better return per acre. It can be grown on poor land, and any orchardist on starting his orchard could grow tobacco between his trees and secure a return from tobacco while his trees are coming to maturity. Tobacco is a blight-resisting plant, and there is no known blight for it in New Zealand. Our company will be prepared to instruct farmers in growing and curing, and we will also be prepared to supply seed.' We started manufacturing at our factory at Port Ahuriri in July, 1916. Here, again, we had considerable expense in experimenting, and training our hands. We have manufactured and sold to date 106,6401b. weight, leaving 75,000 lb. of raw leaf still to be manufactured. During the time we have been manufacturing we have paid to the Government £5,300 in excise duty. The directors of the company look on this industry as a national one, and one that should be encouraged and fostered by the Government. We have proved beyond doubt that a first-class leaf can be grown in New Zealand. There are about 3,000,0001b. weight of tobacco consumed annually by the New Zealand public. From this the Committee can readily see that there is unlimited scope for the industry. We have done the pioneering work, and spent about £18,000 in trying out the industry without assistance. Most of our money has been spent in wages, experimenting, growing, and manufacturing. The larger part has been spent in wages. For the continuation of our activities it is necessary that we should receive financial assistance. We are also of opinion that some concession should be given to any New Zealand company operating with New Zealand capital and manufacturing New Zealand leaf as against any other company operating with New Zealand leaf but with outside capital. Any other New Zealand company starting should have the same concession. 1. To Mr. Luke.] Tobacco naturally wants a dry season and hot weather. In Hawke's Bay the season is suitable. We have been carrying out the toasting of the tobacco :it was reckoned it would improve it. We pay an excise duty of Is. per pound as against a duty of 3s. 6d. on the manufactured article. We have a preference of 2s. 6d,, but if the raw leaf is brought into the country and manufactured 2s. per pound is paid on it. We are putting up the tobacco in little bags. Tin was unprocurable when we started. We intend to use the tins when it is possible to purchase them. 2. To Air. Hudson.] The fruitgrower has to wait four or five years for a good return from his trees. If he could put tobacco in between the trees it would give him a surer return than tomatoes. He would grow the tobacco and cure it, but we would instruct him how to proceed. We have not had results from farmers' growing. Some of the farmers in Nelson have grown it, but we cannot say anything about it: we have not seen'the tobacco yet. There is nothing the fruitgrower need be afraid of in the growing of tobacco. 3. To Mr. Poland.] We have not grown tobacco in connection with fruit-culture. Nelson is a suitable district for the growing of tobacco. The sea-coast is suitable if not too near the coast. If too near the coast you get the frost. The poorer the land the better for the tobacco. Much of the pumice, land on the plains round Rotorua would be suitable. We grew some at Pakipaki, where the ground was all pumice on top, and grew it successfully. I do not know much about the North of Auckland land. I think Auckland would be suitable, because the climate is warm. 4. To Dr. A. K. Newman.] Frost is fatal to tobacco-growing, though a slight attack would not hurt it. The plant is similar to a cabbage-plant. You need not plant out till November, and it takes four or five months more to come to maturity. You can practically dodge the frost with it. 5. To Mr. Veitch.] The company started out with a certain amount of money. We leased the land, and grew the plant. It has been an expensive thing, and we have had to pay high prices all the time. Most of the money has gone in wages. In one year the wages on the farm ran into £6,000. If we can get sufficient capital to enable us to become thoroughly established the industry would be a profitable one, and would stand on its own feet without assistance. We have done the pioneer work, and can see that the thing is all right, but it wants a chance. All we ask is this: We have paid £5,300 by way of duty, and we say, "Let us have it back, and we will go on with it again." We have had a cerlain amount of difficulty in getting our stuff on to the

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